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TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Provision for income taxes (benefits)


	For the Years Ended December 31,
INCOME TAXES(1)	2022		2021		2020
	(In millions)
Currently payable (receivable)-
Federal (2)	$	—	$	2	$	(14)
State	11		21		21
	11		23		7
Deferred, net-
Federal(3)	946		174		171
State(4)	47		127		(38)
	993		301		133


Investment tax credit amortization	(4)		(4)		(14)
Total income taxes	$	1,000	$	320	$	126

(1) Income Taxes on Income from Continuing Operations.

(2) Excludes $2 million of federal tax benefit associated with discontinued operations for the years ended December 31, 2021.

(3) Excludes $46 million and $66 million of federal tax benefits associated with discontinued operations for the years ended December 31, 2021 and 2020, respectively.

(4) Excludes $1 million of state tax expense associated with discontinued operations for the year ended December 31, 2020.

Schedule of Reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes

The following tables provide a reconciliation of federal income tax expense (benefit) at the federal statutory rate to the total income taxes (benefits) for the years ended December 31, 2022, 2021 and 2020:


	For the Years Ended December 31,
	2022			2021			2020
	(In millions)

Income from Continuing Operations, before income taxes	$	1,439		$	1,559		$	1,129
Federal income tax expense at statutory rate (21%)	$	302		$	327		$	237
Increases (reductions) in taxes resulting from-
State and municipal income taxes, net of federal tax benefit	56			122			75
AFUDC equity and other flow-through	(26)			(29)			(38)
Amortization of investment tax credits	(4)			(4)			(14)






Deferred gain on 19.9% FET minority interest sale	752			—			—
Federal tax credits claimed	(3)			(34)			—
Nondeductible DPA monetary penalty	—			52			—
Excess deferred tax amortization due to the Tax Act	(51)			(54)			(56)
TMI-2 reversal of tax regulatory liabilities	—			—			(40)
Uncertain tax positions	2			(82)			(1)

Valuation allowances	(47)			17			(49)
Other, net	19			5			12
Total income taxes	$	1,000		$	320		$	126
Effective income tax rate	69.5		%	20.5		%	11.2		%

Schedule of Accumulated deferred income taxes

ccumulated deferred income taxes as of December 31, 2022 and 2021, are as follows:


	As of December 31,
	2022		2021
	(In millions)

Property basis differences	$	5,528	$	5,670








Pension and OPEB	(496)		(570)



AROs	(22)		(21)
Regulatory asset/liability	432		322

Deferred compensation	(149)		(155)



Deferred gain on 19.9% FET minority interest sale	752		—
Loss carryforwards and tax credits	(2,073)		(2,040)
Valuation reserve	440		484


All other	(210)		(253)
Net deferred income tax liability	$	4,202	$	3,437

Schedule of Pre-tax net operating loss expiration period


Expiration Period	State		Local
	(In millions)
2023-2027	$	2,479	$	4,317
2028-2032	1,603		—
2033-2037	876		—
2038-2042	935		—
Indefinite	2,351		—
	$	8,244	$	4,317

Schedule of Valuation allowance roll forward

The following table summarizes the changes in valuation allowances on federal, state and local DTAs related to disallowed interest and certain employee remuneration, in addition to state and local NOLs discussed above for the years ended December 31, 2022, 2021 and 2020:


(In millions)	2022		2021		2020

Beginning of year balance	$	484	$	496	$	441
Charged to income	(44)		(12)		55
Charged to other accounts	—		—		—
Write-offs	—		—		—
End of year balance	$	440	$	484	$	496

Schedule of Changes in unrecognized tax benefits

The following table summarizes the changes in unrecognized tax positions for the years ended December 31, 2022, 2021 and 2020:



	(In millions)
Balance, January 1, 2020	$	164
Current year increases	7
Prior year decreases	(28)


Effectively settled with taxing authorities	(2)
Decrease for lapse in statute	(2)
Balance, December 31, 2020	$	139
Current year increases	15
Prior year decreases	(8)
Effectively settled with taxing authorities	(97)
Decrease for lapse in statute	(2)


Balance, December 31, 2021	$	47


Prior years increases	2

Decrease for lapse in statute	(7)
Balance, December 31, 2022	$	42

Schedule of Details of general taxes

General tax expense for the years ended December 31, 2022, 2021 and 2020, recognized in continuing operations is summarized as follows:


	For the Years Ended December 31,
	2022		2021		2020
	(In millions)
kWh excise	$	191	$	189	$	183
State gross receipts	219		190		182
Real and personal property	596		571		541
Social security and unemployment	105		103		112
Other	18		20		28
Total general taxes	$	1,129	$	1,073	$	1,046